Carlyle opts to sell car breakdown firm to GIC rather than launch a stock
market float

The private equity owner of RAC has decided to ditch a stock market float in favour of a £2bn-plus sale to Singapore’s sovereign wealth fund.

Carlyle, which bought the breakdown business for £1bn from insurer Aviva three years ago, is locked in talks with Government Investment Corporation (GIC) of Singapore.

Sources indicated the sale, first reported by Sky News, could be announced as early as Wednesday afternoon.

Although it is thought unlikely the final sale price will be announced alongside details of the transaction, Carlyle would only opt to sell rather than float the business in return for a healthy premium.

Bankers including Goldman Sachs and Barclays have led a dual-track process, assessing the appetite for an initial public offering (IPO) at the same time as a sale.

Other interested parties are thought to have included rival private equity bidders Apax and CVC, as well as other sovereign wealth funds.

It is believed that Carlyle is likely to retain a stake in RAC.

The IPO was set to trigger a £300m windfall for senior management. It remains unclear what the sale to GIC will mean for those pay-outs, or for Chris Woodhouse, the former Debenhams finance director who has run the business since 2012.

The decision to sell rather than float the business comes despite a flurry ot float announcements in the last few days, including those launched by challenger bank Aldermore and upmarker shoe designer Jimmy Choo.